Advertisement

Investigating the Intentions to Adopt ICT in Malaysian SMEs Using the UTAUT Model

  • Anis Nur Assila Rozmi
  • Mohd Izhar A. Bakar
  • Abdul Razak Abdul Hadi
  • A. Imran NordinEmail author
Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 11870)

Abstract

Small and Medium Enterprises (SMEs) in today’s global competition should establish strong initiatives and strategies to ensure that they can continue to survive. SMEs are now one of the driving engines for job creation and as an economy booster especially in Malaysia. Thus, the application of sophisticated technology in running the business has become necessary. This study aims to predict the intention to adopt the application of Information and Communication Technology (ICT) amongst SMEs in Malaysia. Using the Unified Theory of Acceptance and Use of Technology Model (UTAUT), a survey is conducted with 250 SME owners. A self-reported questionnaire is applied to examine the relationship between factors that influence SME owner’s intentions to use ICT, factor that influences action to use ICT, and control factors that mediate the effects of the process of using the ICT in running all the business activities. The findings suggest that three out of five factors in UTAUT affect SME owner’s intention to adopt ICT in their business namely effort expectancy, social influence and facilitating conditions. These results are useful especially for the government to plan and to design appropriate trainings to encourage SME owners are willing to adopt ICT in running their business.

Keywords

User intentions Business IT ICT adoption Small and Medium Enterprises (SMEs) UTAUT 

References

  1. 1.
    Abu, F., Jabar, J., Yunus, A.R.: Modified of UTAUT theory in adoption of technology for Malaysia small medium enterprises (SMEs) in food industry. Aust. J. Basic Appl. Sci. 9(4), 104–109 (2015)Google Scholar
  2. 2.
    Akomea-Bonsu, C., Sampong, F.: The impact of information and communication technologies (ICT) on small and medium scale enterprises (SMEs) in the Kumasi Metropolis, Ghana, West Africa. Eur. J. Bus. Manag. 4(20), 152–158 (2012)Google Scholar
  3. 3.
    Alwahaishi, S., Snásel, V.: Acceptance and use of information and communications technology: a UTAUT and flow based theoretical model. J. Technol. Manag. Innov. 8(2), 61–73 (2013)CrossRefGoogle Scholar
  4. 4.
    Apulu, I., Latham, A., Moreton, R.: Issues of ICT adoption amongst SMEs in Nigeria. Int. J. Manag. Pract. 6(1), 58–76 (2013)CrossRefGoogle Scholar
  5. 5.
    Arendt, L.: Barriers to ICT adoption in SMEs: how to bridge the digital divide? J. Syst. Inf. Technol. 10(2), 93–108 (2008)CrossRefGoogle Scholar
  6. 6.
    Ashrafi, R., Murtaza, M.: Use and impact of ICT on SMEs in Oman. Electron. J. Inf. Syst. Eval. 11(3), 125–138 (2008)Google Scholar
  7. 7.
    Barba-Sánchez, V., Martínez-Ruiz, M.D.P., Jiménez-Zarco, A.I.: Drivers, benefits and challenges of ICT adoption by small and medium sized enterprises (SMEs): a literature review. Prob. Perspect. Manag. 5(1), 103–114 (2007)Google Scholar
  8. 8.
    Boontarig, W., Chutimaskul, W., Chongsuphajaisiddhi, V., Papasratorn, B.: Factors influencing the Thai elderly intention to use smartphone for e-Health services. In: 2012 IEEE Symposium on Humanities, Science and Engineering Research, pp. 479–483. IEEE, June 2012Google Scholar
  9. 9.
    Braun, P.: Regional tourism networks: the nexus between ICT diffusion and change in Australia. Inf. Technol. Tour. 6(4), 231–243 (2003)CrossRefGoogle Scholar
  10. 10.
    Davis, F.D., Bagozzi, R.P., Warshaw, P.R.: User acceptance of computer technology: a comparison of two theoretical models. Manag. Sci. 35(8), 982–1003 (1989)CrossRefGoogle Scholar
  11. 11.
    Ghobakhloo, M., Hong, T.S., Sabouri, M.S., Zulkifli, N.: Strategies for successful information technology adoption in small and medium-sized enterprises. Information 3(1), 36–67 (2012)CrossRefGoogle Scholar
  12. 12.
    Hallová, M., Polakovič, P., Šilerová, E., Slováková, I.: Data protection and security in SMEs under enterprise infrastructure. Agris On-Line Pap. Econ. Inf. 11(1), 27–33 (2019)Google Scholar
  13. 13.
    Houghton, K.A., Winklhofer, H.: The effect of website and e-commerce adoption on the relationship between SMEs and their export intermediaries. Int. Small Bus. J. 22(4), 369–388 (2004)CrossRefGoogle Scholar
  14. 14.
    James, O., Nancy, I., Chinazam, K.J., Ogheneovie, E., Israel, A.: Creativity and innovation culture: a prerequisite for sustaining competitive advantage in SMES. Covenant J. Entrepreneurship 1(3) (2018)Google Scholar
  15. 15.
    Kapurubandara, M., Lawson, R.: Barriers to adopting ICT and e-commerce with SMEs in developing countries: an exploratory study in Sri Lanka. Univ. West. Syd. Aust. 82, 2005–2016 (2006)Google Scholar
  16. 16.
    Kaufhold, M.A., et al.: Business continuity management in micro enterprises: perception, strategies, and use of ICT. Int. J. Inf. Syst. Crisis Response Manag. (IJISCRAM) 10(1), 1–19 (2018)CrossRefGoogle Scholar
  17. 17.
    Marchewka, J.T., Kostiwa, K.: An application of the UTAUT model for understanding student perceptions using course management software. Commun. IIMA 7(2), 10 (2007)Google Scholar
  18. 18.
    Mazzarol, T.: SMEs engagement with e-commerce, e-business and e-marketing. Small Enterp. Res. 22(1), 79–90 (2015)CrossRefGoogle Scholar
  19. 19.
    Modimogale, L., Jan, H.: The role of ICT within small and medium enterprises in Gauteng. Commun. IBIMA (2011)Google Scholar
  20. 20.
    Mohadis, H.M., Ali, N.M.: Smartphone application for physical activity enhancement at workplace: would office workers actually use it? In: 2018 International Conference on Information and Communication Technology for the Muslim World (ICT4M), pp. 144–149. IEEE, July 2018Google Scholar
  21. 21.
    Ongori, H., Migiro, S.O.: Information and communication technologies adoption in SMEs: literature review. J. Chin. Entrepreneurship 2(1), 93–104 (2010)CrossRefGoogle Scholar
  22. 22.
    Oye, N.D., Iahad, N.A., Rahim, N.A.: The history of UTAUT model and its impact on ICT acceptance and usage by academicians. Educ. Inf. Technol. 19(1), 251–270 (2014)CrossRefGoogle Scholar
  23. 23.
    Pai, J.C., Tu, F.M.: The acceptance and use of customer relationship management (CRM) systems: an empirical study of distribution service industry in Taiwan. Expert Syst. Appl. 38(1), 579–584 (2011)CrossRefGoogle Scholar
  24. 24.
    Peansupap, V., Walker, D.H.T.: Information communication technology (ICT) implementation constraints. Eng. Constr. Archit. Manag. 13(4), 364–379 (2006).  https://doi.org/10.1108/09699980610680171CrossRefGoogle Scholar
  25. 25.
    Pires, G.D., Stanton, J., Rita, P.: The internet, consumer empowerment and marketing strategies. Eur. J. Mark. 40(9/10), 936–949 (2006)CrossRefGoogle Scholar
  26. 26.
    Rahman, A.L.A., Jamaludin, A., Mahmud, Z.: Intention to use digital library based on modified UTAUT model: perspectives of Malaysian postgraduate students. World Acad. Sci. Eng. Technol. 75, 116–122 (2011)Google Scholar
  27. 27.
    Ritchie, B., Brindley, C.: ICT adoption by SMEs: implications for relationships and management. New Technol. Work Employ. 20(3), 205–217 (2005)CrossRefGoogle Scholar
  28. 28.
    Rozmi, A.N.A., Nordin, A.I., Bakar, M.I.A.: The perception of ICT adoption in small medium enterprise: a SWOT analysis. Int. J. Innov. Bus. Strat. (IJIBS) 19(1), 69–79 (2018)Google Scholar
  29. 29.
    Sin Tan, K., Choy Chong, S., Lin, B., Cyril Eze, U.: Internet-based ICT adoption among SMEs: demographic versus benefits, barriers, and adoption intention. J. Enterp. Inf. Manag. 23(1), 27–55 (2010)CrossRefGoogle Scholar
  30. 30.
    Suhartanto, D., Leo, G.: Small business entrepreneur resistance of ICT adoption: a lesson from Indonesia. Int. J. Bus. Glob. 21(1), 5–18 (2018)CrossRefGoogle Scholar
  31. 31.
    Tan, P.J.B.: Students’ adoptions and attitudes towards electronic placement tests: a UTAUT analysis. Am. J. Comput. Technol. Appl. 1(1), 14–23 (2013)Google Scholar
  32. 32.
    Tarutė, A., Gatautis, R.: ICT impact on SMEs performance. Procedia-Soc. Behav. Sci. 110, 1218–1225 (2014)CrossRefGoogle Scholar
  33. 33.
    Venkatesh, V., Morris, M.G., Davis, G.B., Davis, F.D.: User acceptance of information technology: toward a unified view. MIS Q. 27(3), 425 (2003).  https://doi.org/10.2307/30036540CrossRefGoogle Scholar

Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  • Anis Nur Assila Rozmi
    • 1
    • 2
  • Mohd Izhar A. Bakar
    • 2
  • Abdul Razak Abdul Hadi
    • 3
  • A. Imran Nordin
    • 1
    Email author
  1. 1.Institute of Visual Informatics (IVI)Universiti Kebangsaan MalaysiaBangiMalaysia
  2. 2.Universiti Kuala Lumpur British Malaysian InstituteGombakMalaysia
  3. 3.Universiti Kuala Lumpur Business SchoolKuala LumpurMalaysia

Personalised recommendations